Gartner analyst Jon Hardcastle. Insurer OneAmerica is transferring its data center operations to a service provider because its concerned that one day it wont be able to replace the experts who run its vital systems, said CIO Gene Berry. By June, the company expects to complete the transfer of all of its IT services to T Systems North America, while cutting the size of its internal data center to 2,000 square feet from 25,000 square feet. The in-house facility will mostly support networking and will be managed by T Systems. OneAmerica once employed about 65 people in its data center and used about 18 technologies. In some cases, only one or two people had the expertise to maintain specialized systems. That gave us a lot of concern long-term, said Berry. We didnt have the ability to hire backups. Hagen Wenzek, CTO at IPG Media brands, which manages Interpublic Groups media assets, also cited concerns about potential brain drain as a reason for shifting management of the companys SQL Server and SharePoint systems to managed services provider Avanade. I cant hire enough experts willing to work for a media company, said Wenzek, noting that most people with the skills he needs would rather work for tech vendors. Avanade boosted the performance of the Microsoft technology that IPG Mediabrands uses and improved delivery of reports, said Wenzek. IPG Mediabrands has since shifted the focus of its IT hiring efforts to recruiting business analysts who irtualization and cloud services are making it can work with data and visualization tools, he added. easier for companies to shift IT infrastructure operaHank Seader, managing principal of the Uptime Institute, said tions to service providers, and that is exactly what that it takes a certain set of legacy skills, a certain commitment to many organizations are doing. the less-than-glorious career fields to make data centers work, and The trend is most prevalent among small and its hard to find people to do it. midsize companies, many of which are shutting down internal Do in-house data centers have a future? I think only [at] the systems and shifting IT workloads to external providers because really large companies, said Berry, [at] smaller companies, no. they want to save money and because theyre concerned that it Meanwhile, the closing of data centers has become a significant will become difficult to find people with the concern for IT professionals. Jobs with the skills necessary to run data centers. best career paths are moving from data Large public- and private-sector orgacenters to fast-growing service providers. nizations have been consolidating data For instance, IT hosting company RackI cant hire centers for years by better optimizing inspace plans to hire 1,000 new employees enough experts house operations; the federal government, over the next two years. In the 2012 for example, is shutting down hundreds of Rackspace annual report, executives told willing to work for a media data centers. But most of those enterprises investors that demand is growing in part company. only use cloud services at the margins. because smaller companies lack the IT staff hageN weNzek, CTO, We are definitely seeing a trend away to manage infrastructure operations and IPG MedIabrands from in-house data centers toward external dont want to buy new equipment. u
Pulling the Plug on Small
In-house Data Centers As IT workers with key skills grow scarce and the costs of upgrading data centers rise, many CIOs are replacing in-house ops with cloud-based services. By Patrick Thibodeau
6 C o m p u t e r w o r l d A p r i l 8 , 2 0 1 3 06_p006_News1a [Print].indd 6